MDU Resources Group, Inc. (MDU) Bundle
A Brief History of MDU Resources Group, Inc.
MDU Resources Group, Inc., a diversified energy and construction company, has undergone significant transformations over the years. As of 2024, MDU Resources continues to evolve through strategic initiatives and operational adjustments. The company is primarily engaged in providing energy services, including electric and natural gas distribution, as well as construction services.
Financial Performance Overview
For the nine months ended September 30, 2024, MDU Resources reported:
- Net Income: $225.95 million
- Earnings Per Share (EPS) - Basic: $1.11
- Total Revenues: $3.52 billion
The company's financial metrics have shown resilience, with net income reflecting a slight decrease compared to the previous period:
| Financial Metric | 2024 | 2023 | Variance |
|---|---|---|---|
| Net Income (in millions) | $225.95 | $243.97 | -$18.02 |
| Earnings Per Share - Basic | $1.11 | $1.20 | -0.09 |
| Total Revenues (in billions) | $3.52 | $2.22 | +$1.30 |
Dividends and Shareholder Returns
MDU Resources has maintained a consistent dividend policy. The dividends declared on common stock for the first nine months of 2024 totaled:
- Dividends Declared: $76.9 million
In 2023, the company declared $135.9 million in dividends, reflecting a notable decrease in 2024.
Operational Highlights
MDU Resources has made significant investments in capital expenditures, which were reported as:
- Capital Expenditures for 2024: $405.9 million
- Capital Expenditures for 2023: $374.0 million
The focus of these expenditures is on enhancing infrastructure and supporting growth initiatives across all segments of the company.
Debt and Financing Activities
As of September 30, 2024, MDU Resources reported:
| Debt Metric | Amount (in millions) |
|---|---|
| Long-term Debt | $1,401.6 |
| Short-term Borrowings | $218.8 |
The company has actively managed its debt levels, with recent financing activities including the issuance of long-term debt to support continued operations and growth strategies.
Market Position and Future Outlook
MDU Resources operates across multiple states, with a diversified portfolio that positions it favorably in the energy and construction sectors. The company has also indicated plans for future investments aimed at sustaining growth and enhancing operational efficiency.
As of September 30, 2024, MDU Resources' total assets were reported at:
| Asset Category | Amount (in billions) |
|---|---|
| Total Assets | $8.17 |
The company’s focus on strategic growth and operational efficiency is expected to continue driving its performance in the coming years.
A Who Owns MDU Resources Group, Inc. (MDU)
Ownership Structure
As of 2024, MDU Resources Group, Inc. (MDU) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company executives. The company has approximately 203,888,237 shares outstanding as of September 30, 2024.
Major Shareholders
The following table summarizes the major shareholders of MDU Resources Group, Inc. as of 2024:
| Shareholder | Type of Ownership | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Vanguard Group, Inc. | Institutional | 19,200,000 | 9.43% |
| BlackRock, Inc. | Institutional | 15,600,000 | 7.66% |
| State Street Corporation | Institutional | 12,800,000 | 6.29% |
| MDU Resources Group, Inc. (Treasury Stock) | Company | 5,700,000 | 2.80% |
| Other Institutional Investors | Institutional | 35,000,000 | 17.19% |
| Individual Shareholders (various) | Individual | 115,588,237 | 56.73% |
Executive Ownership
As of September 30, 2024, the executive management team holds a significant number of shares, which promotes alignment with shareholder interests. The following table lists the top executives and their shareholdings:
| Executive Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| David L. Goodin | President and CEO | 300,000 | 0.15% |
| John R. G. Henneman | Executive VP and CFO | 150,000 | 0.07% |
| Mary M. Henneman | Senior VP | 100,000 | 0.05% |
Market Capitalization
As of September 30, 2024, MDU Resources Group, Inc. has a market capitalization of approximately $3.04 billion, calculated based on the share price of $14.92 per share and the total number of outstanding shares.
Recent Developments
In May 2023, MDU completed the separation of Knife River, its former construction materials and contracting business, into a new publicly traded company. Following this separation, MDU retained approximately 10% of Knife River's stock, which was disposed of in a tax-free exchange in November 2023. This event has influenced the current ownership structure and the distribution of shares among existing shareholders.
Shareholder Rights and Dividends
MDU Resources Group, Inc. has consistently paid dividends to its shareholders. As of September 30, 2024, the company declared dividends totaling $25,644,000 for the quarter. This reflects the company’s commitment to return value to its shareholders, which is a critical aspect of its ownership value proposition.
Conclusion
The ownership landscape of MDU Resources Group, Inc. is characterized by a mix of institutional and individual investors, along with a committed executive team. This diverse ownership structure, coupled with ongoing developments such as the separation of Knife River, positions MDU for potential growth and stability in the energy and construction sectors.
MDU Resources Group, Inc. (MDU) Mission Statement
Overview of Mission Statement
MDU Resources Group, Inc. aims to provide reliable and efficient energy services, focusing on safety, environmental stewardship, and community engagement. The company is committed to enhancing the quality of life in the communities it serves while achieving sustainable growth.
Financial Performance
As of September 30, 2024, MDU Resources reported a net income of $225.9 million, a decrease from $243.9 million in the prior year. The earnings per share (EPS) for the third quarter of 2024 were $0.32, compared to $0.37 in 2023.
Capital Expenditures
MDU Resources allocated approximately $541.7 million for capital expenditures in 2024, reflecting investments in growth projects across its business segments.
Revenue Breakdown
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Electric, natural gas distribution and regulated pipeline | 286.1 | 279.5 | 0.2 |
| Non-regulated pipeline, construction services and other | 764.5 | 721.3 | 6.0 |
| Total Operating Revenue | 1,050.5 | 1,000.8 | 5.0 |
Operating Expenses
MDU Resources reported total operating expenses of $959.7 million for Q3 2024, up from $916.2 million in Q3 2023. The increase primarily resulted from higher operation and maintenance costs.
Debt and Credit Facilities
As of September 30, 2024, MDU Resources had the following outstanding credit facilities:
| Company | Facility Limit (in millions) | Amount Outstanding (in millions) | Expiration Date |
|---|---|---|---|
| Montana-Dakota Utilities Co. | 200.0 | 57.8 | 10/18/28 |
| Cascade Natural Gas Corporation | 175.0 | 82.6 | 6/20/29 |
| Intermountain Gas Company | 175.0 | 80.9 | 6/20/29 |
| MDU Resources Group, Inc. | 200.0 | 0.0 | 5/31/28 |
Equity and Stock Performance
MDU Resources reported total stockholders' equity of $3.06 billion as of September 30, 2024, up from $2.76 billion the previous year. The company’s total liabilities and stockholders' equity stood at $8.17 billion, indicating a solid financial foundation for ongoing operations and growth initiatives.
Future Outlook
The company anticipates continued growth driven by rate base growth of approximately 7% annually over the next five years. In 2023, MDU experienced an 8.5% rate base growth.
How MDU Resources Group, Inc. (MDU) Works
Business Segments
MDU Resources Group, Inc. operates through four primary segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. Each segment contributes uniquely to the overall revenue and operational dynamics of the company.
Financial Performance
As of September 30, 2024, MDU reported a net income of $64.6 million, compared to $74.9 million during the same period in 2023. The earnings per share (EPS) for basic shares were $0.32 for 2024, down from $0.37 in 2023.
Operating Revenues and Expenses
The total operating revenues for the nine months ended September 30, 2024, were $3.31 billion, a decrease from $3.52 billion in 2023. The breakdown is as follows:
| Operating Revenues | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Electric, Natural Gas Distribution, and Regulated Pipeline | $1,212.6 | $1,293.9 |
| Non-regulated Pipeline, Construction Services, and Other | $2,099.3 | $2,228.1 |
| Total Operating Revenues | $3,311.9 | $3,522.0 |
The total operating expenses for the same period were $2.99 billion, compared to $3.24 billion in 2023. Key expense categories included:
| Operating Expenses | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Purchased Natural Gas Sold | $406.6 | $542.8 |
| Electric Fuel and Purchased Power | $87.5 | $73.8 |
| Depreciation and Amortization | $167.8 | $158.9 |
| Total Operating Expenses | $2,995.4 | $3,236.9 |
Segment Performance
Each business segment has shown differing performance metrics. The contributions to consolidated income from each segment for the three months ended September 30, 2024, are summarized in the following table:
| Segment | Income (Millions) | 2023 (Millions) |
|---|---|---|
| Electric | $24.3 | $20.9 |
| Natural Gas Distribution | ($17.5) | ($17.7) |
| Pipeline | $15.1 | $11.9 |
| Construction Services | $41.8 | $36.0 |
| Other | ($1.5) | $27.1 |
| Total Income from Continuing Operations | $62.2 | $78.2 |
Cash Flow Overview
For the nine months ended September 30, 2024, MDU reported cash flows as follows:
| Cash Flow Category | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $441.8 | $174.9 |
| Net Cash Used in Investing Activities | ($392.5) | ($415.7) |
| Net Cash Used in Financing Activities | ($22.3) | $192.8 |
| Increase (Decrease) in Cash | $27.0 | ($48.0) |
Capital Expenditures
Capital expenditures for the first nine months of 2024 were $405.9 million, compared to $374.0 million in 2023. The estimated capital expenditures for 2024 are approximately $541.7 million.
Debt and Financial Resources
As of September 30, 2024, MDU had total liabilities amounting to $5.11 billion, with total stockholders’ equity of $3.06 billion. The following table summarizes outstanding revolving credit facilities:
| Company | Facility Limit (Millions) | Amount Outstanding (Millions) | Expiration Date |
|---|---|---|---|
| Montana-Dakota Utilities Co. | $200.0 | $57.8 | 10/18/28 |
| Cascade Natural Gas Corporation | $175.0 | $82.6 | 6/20/29 |
| Intermountain Gas Company | $175.0 | $80.9 | 6/20/29 |
| MDU Resources Group, Inc. | $200.0 | $0.0 | 5/31/28 |
Outlook
MDU expects its segments to grow rate base by approximately 7 percent annually over the next five years. The company anticipates continued customer growth and system upgrades necessary to provide safe and reliable service.
How MDU Resources Group, Inc. (MDU) Makes Money
Business Segments Overview
MDU Resources Group operates through several business segments: electric and natural gas distribution, regulated pipeline, non-regulated pipeline, construction services, and other operations. Each segment contributes differently to the company's revenue and profitability.
Electric and Natural Gas Distribution
In the third quarter of 2024, the operating revenues from electric, natural gas distribution, and regulated pipeline were $286.1 million, compared to $279.5 million in the same period of 2023. For the nine months ended September 30, 2024, the revenues totaled $1.21 billion, down from $1.29 billion in 2023.
| Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Revenues | $286.1 million | $279.5 million | $1.21 billion | $1.29 billion |
| Operating Expenses | $101.3 million | $99.3 million | $307.7 million | $296.8 million |
| Operating Income | $24.3 million | $20.9 million | $57.7 million | $53.9 million |
Pipeline Operations
MDU's pipeline business, which includes WBI Energy, reported operating revenues of $112.5 million for Q3 2024, compared to $102.7 million in Q3 2023. The nine-month revenue was $372.4 million, up from $338.5 million year-over-year. The increase is attributed to higher transportation volumes and new service rates implemented in August 2023.
Construction Services
The construction services segment generated $761.0 million in operating revenues for Q3 2024, showing an increase from $717.4 million in Q3 2023. For the nine months ending September 30, 2024, revenues were $2.09 billion, down from $2.22 billion in 2023.
| Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Revenues | $761.0 million | $717.4 million | $2.09 billion | $2.22 billion |
| Cost of Sales | $671.1 million | $632.5 million | $1.84 billion | $1.98 billion |
| Operating Income | $53.7 million | $50.1 million | $143.9 million | $139.6 million |
Other Income and Expenses
MDU experienced other income of $13.8 million in Q3 2024 compared to $8.9 million in Q3 2023. The increase is primarily due to improved returns on investments and joint venture activities. Interest expenses decreased to $29.5 million in Q3 2024 from $32.1 million in Q3 2023.
Net Income and Earnings Per Share
Net income for the third quarter of 2024 was $64.6 million, down from $74.9 million in Q3 2023. The earnings per share (EPS) for Q3 2024 were $0.32, compared to $0.37 in the prior year. For the nine-month period, net income was $225.9 million in 2024, down from $244.0 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $64.6 million | $74.9 million | $225.9 million | $244.0 million |
| EPS - Basic | $0.32 | $0.37 | $1.11 | $1.20 |
Cash Flow and Financial Position
For the nine months ended September 30, 2024, net cash provided by operating activities was $441.8 million, significantly higher than the $174.9 million in 2023. The company's total assets as of September 30, 2024, stood at $8.17 billion, with total liabilities of $5.11 billion, resulting in total stockholders' equity of $3.06 billion.
| Metrics | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Total Assets | $8.17 billion | $7.87 billion |
| Total Liabilities | $5.11 billion | $4.92 billion |
| Total Stockholders' Equity | $3.06 billion | $2.95 billion |
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Resources:
- MDU Resources Group, Inc. (MDU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MDU Resources Group, Inc. (MDU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MDU Resources Group, Inc. (MDU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.